Thomas Massie on Tax Reform

Current tax system punishes achievement

America's sluggish economy and persistently high unemployment are due to our government's massive debt, over regulation of our businesses, and a tax system that punishes achievement. I am opposed to bailouts, corporate subsidies, undeclared wars,
and so called stimulus spending--on economic, moral, and constitutional grounds.

Supports the Taxpayer Protection Pledge.

[The ATR, Americans for Tax Reform, run by conservative lobbyist Grover Norquist, ask legislators to sign the Taxpayer Protection Pledge in each election cycle. Their self-description:]

In the Taxpayer Protection Pledge, candidates and incumbents solemnly bind themselves to oppose any and all tax increases. Since its rollout in 1986, the pledge has become de rigeur for Republicans seeking office, and is a necessity for Democrats running in Republican districts. Today the Taxpayer Protection Pledge is offered to every candidate for state office and to all incumbents. More than 1,100 state officeholders, from state representative to governor, have signed the Pledge.

The Taxpayer Protection Pledge: "I pledge to the taxpayers of my district and to the American people that I will: ONE, oppose any and all efforts to increase the marginal income tax rate for individuals and business; and TWO, oppose any net reduction or elimination of deductions and credits, unless matched dollar
for dollar by further reducing tax rates."

Opponents' Opinion (from wikipedia.com):In Nov. 2011, Sen. Harry Reid (D-NV) claimed that Congressional Republicans "are being led like puppets by Grover Norquist. They're giving speeches that we should compromise on our deficit, but never do they compromise on Grover Norquist. He is their leader." Since Norquist's pledge binds signatories to opposing deficit reduction agreements that include any element of increased tax revenue, some Republican deficit hawks now retired from office have stated that Norquist has become an obstacle to deficit reduction. Former Republican Senator Alan Simpson, co-chairman of the National Commission on Fiscal Responsibility and Reform, has been particularly critical, describing Norquist's position as "no taxes, under any situation, even if your country goes to hell."

Replace income tax and IRS with FairTax.

Massie co-sponsored H.R.25 & S.155

Congressional Summary: This bill imposes a national sales tax in lieu of the current income and corporate income tax, employment taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2017, with adjustments in subsequent years. U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon family size and poverty guidelines. No funding is allowed for the operations of the Internal Revenue Service after FY2019. Finally, the FairTax terminates if the 16th Amendment to the Constitution (authorizing an income tax) is not repealed within 7 years.

Supporters reasons for voting YEA: Rep. MORAN: I am all on board on tax reform, but the best solution is not tinkering with the current system; it is an overhaul of the current Tax Code. The FairTax, in my view, brings two goals front and center: to pass on to the next generation of Americans the freedoms and liberties guaranteed by our Constitution, and the
opportunity for every American to live the American dream.

Opponents reasons for voting NAY: (by FairTaxWarrior.com):

Criticisms from The Left

The FairTax rate is really 30%, not the 23% proponents say.

It's an additional national sales tax.

It's really just a windfall tax cut for the rich.

A sales tax is regressive, and punishes the poor unfairly.

It's just a scheme to let corporations escape paying taxes.

Criticisms from The Right:

The FairTax does nothing to cut government spending.

The 23% rate is too high.

It 's the largest welfare increase in history [via the Family Consumption Allowance]

General criticisms

The FairTax will negatively impact the housing market [by removing the mortgage deduction].

Black market activity will increase.

The IRS won't really be abolished.

The Flat (Income) Tax is a better option.

It will be a nightmare to transition to The FairTax from an Income Tax.